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Summary
- Consumer stocks have performed well amid pandemic crisis
- We’ve listed six promising microcap stocks from consumer staple space below.
Amid people’s rush to stockpile goods and commodities amid coronavirus, consumer stocks have performed well in the pandemic. Consumer staples constitute just 0.45 percent of the Toronto Stock Exchange Venture (TSXV), the sister index of the broader Toronto Stock Exchange (TSX).
As the lockdown measures eases across the country, pent up customer demands have led to an increase in consumer goods and essential items, indicating a slow and contained economic rebound.
Here are some promising stocks from consumer staple micro-cap companies on the TSXV:
Else Nutrition Holdings Inc (TSXV:BABY)
Market Cap: C$ 154 million
Israel-based Else Nutrition, the largest consumer staple firm by market capitalization on the TSXV, produces food and nutrition products from to infants, toddlers and children. It offers plant-based non-soy nourishment, an alternative to current dairy-based products in the market.
The company debuted on the TSXV on June 26, 2019, and since then yielded 540+ percent returns. Its stocks have advance by 239.62 percent this year amid pandemic and returned over 50 percent in last three months.
The company is debt-free and reported C$ 7.0 million in cash in the first quarter.
The company also plans to enter the plant-based meat market, a segment projected to grow exponentially in the coming years.
Input Capital Corp. (TSXV:INP)
Market Cap: C$ 52.3 million
Input Capital is a agriculture streaming company, helping stream canola contracts in western Canada. The company sources canola from Canadian farmers in exchange for working capital financing and farmland mortgages. It is virtual grain firm with 100 canola streams in its portfolio, It buys a fixed portion of canola produce at a fixed price from canola farmers for contract duration.
Input reported an adjusted crop revenue of C$ 11.172 million. Its adjusted net income dropped to C$ 0.568 million in Q2 from C$ 0.9 million in Q1. It finished the second quarter with cash and cash equivalents of C$ 34.248 million.
The company’s stock has performed well on the TSXV this year, advancing 22.42 percent this year amid pandemic scenarios. The shares posted ~6.33 percent return in one month.
Input pays a quarterly dividend of C$ 0.01 per share. Its chief revenue sources are crop, interest, and rental income.
Feronia Inc. (TSXV:FRN)
Market Cap: C$ 29 Million
Feronia is a agribusiness firm producing crude palm oil and palm kernel oil (PKO) with operations based in Congo. One of its plantation, Huileries du Congo Belge (HCB), was founded in 1911.
Feronia’s stock has gained 40 percent this year. Its primary revenue source is from crude palm oil production. In its Q4 2019 report, the company reported loss but increase in revenues.
DLC Holding (TSXV:DLC)
Market Cap: C$ 13 million
DLC is an investment holding company specializing in agricultural processing, land-based investments and distribution of macadamia nuts in South Africa. In the first quarter of 2020, the company posted a net loss of CS 3.2 million as compared to a net income of C$ 0.2 million in Q1 2019.
The company’s shares have returned 220 percent in a month and has also advanced 18.52 percent since January this year.
WestBond Enterprises Corporation (TSXV:WBE)
Market Cap: C$ 12 million
WestBond is manufactures and sells disposable paper to various market segments including medical and industrial sectors across North America and Europe. Its main product Bio-Mitt Plus is patented. It also plans to launch ViroBan Plus, a disinfectant wipe, soon.
WestBond posted a 40 percent profit increase (C$ 421,264) in the first quarter as compared to Q1 2019. It’s sales also surged by 2.7 percent in Q1 to C$ 11.6 million as compared to C$ 11.3 million for the year ending March 31, 2019.
The company’s shares have advanced by over 70 percent since January this year. It has yielded 13.33 percent returns in a month.
Naturally Splendid Enterprises (TSXV:NSP)
Market Cap: C$ 11.979 million
Naturally Splendid focuses CBD-infused food market and offers plant and hemp-based products such as seeds, proteins and oils through its manufacturing division Prosnack Foods. The company’ clients and export channels are spread in retail and foodservice domains across Canada, USA, Australia, Germany, Korea, Japan, Thailand and Europe. It has penetration in the penetrating the sports nutrition market through Natera™ Sport Line of products
The cannabis company has multiple revenue streams including its own branded products, private label for top retailers’ in-house brands, contract manufacturer and wholesale.
In May 2020, the company entered a joint venture with Biologic Publishing Inc. to develop and pursuing phase 2 clinical studies for the potential COVID-19 treatment.
The firm’s revenue was C$ 720,255 in the first quarter of 2020, up from C$ 677,987 in the previous quarter, but down from C$ 772,803 in year-on-year. It’s gross profit margin also decreased from 32.29 percent in first quarter of 2019 to 17.58 percent in Q1 this year. As of March 31, 2020, Naturally Splendid had cash-in-hand of C$ 21,361 and a working capital deficit of C$ 2,149,816.
The stocks have gained over 100 percent in the last three months and nearly 30 percent in a month.
